Gold hits record high, on track for best quarter since 1986 on tariff worries
Spot gold jumped 1.1 percent to $3,116.82 an ounce, as of 0638 GMT, after hitting an all-time high of $3,128.06 earlier. US gold futures was up 1.1 percent to $3,148.00.
Gold, traditionally seen as a hedge against political and economic uncertainties, has risen over 18 percent so far this quarter, its biggest quarterly gain since September 1986.
Interest rate cut bets, central bank buying and exchange-traded fund demand are the other factors that have supported the rally. The rapid price rise prompted multiple banks to increase their 2025 price forecasts.
The dollar index eased 0.2 percent, making greenback-priced gold less expensive for buyers holding other currencies.
'Markets' anxiety levels have been ramping up ahead of the reciprocal US tariff announcements, which is keeping gold in high demand as a defensive play,' KCM Trade chief market analyst Tim Waterer said.
'If the tariff announcements this week are not as severe as feared, then the gold price could start to backtrack as profit-taking from the highs may be triggered.'
Trump is expected to announce reciprocal tariffs on April 2, while automobile tariffs will take effect on April 3. On Sunday, Trump said he was 'pissed off' at Russian President Vladimir
Putin and would impose secondary tariffs of 25 percent-50 percent on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
Meanwhile, San Francisco Federal Reserve Bank President Mary Daly said inflation data released on Friday confirms her decreased confidence in her baseline expectation that two rate cuts this year are a 'reasonable' projection.
Spot silver rose 0.6 percent to $34.32 an ounce, platinum was up 1.1 percent to $994.60 and palladium gained 0.9 percent to $980.11. All three metals headed for monthly gains.
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ArabGT
2 hours ago
- ArabGT
US and EU Reach Agreement to Resolve Trade Tensions
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Saudi Gazette
7 hours ago
- Saudi Gazette
Von der Leyen and Trump strike EU-US trade deal with 15% tariff for the bloc
BRUSSELS — The European Union and the United States have struck a tentative trade deal to avert a potentially devastating tariff war between two of the world's largest economies, capping a race against time before a self-imposed deadline of 1 August. Under the agreed terms, finalised on Sunday by European Commission President Ursula von der Leyen and US President Donald Trump during a meeting in Scotland, the majority of EU exports bound for the American market will be subject to a 15% tariff. The tariff for US exports bound for the EU market was not immediately clear. The deal is preliminary and needs to be further fleshed out. "I think it's great we made a deal today instead of playing games," Trump said at the end of the meeting. "I think it's the biggest deal ever made." "It's a big deal. It's a huge deal," von der Leyen said. "It will bring stability, it will bring predictability. That's very important for businesses on both sides of the Atlantic."Von der Leyen noted the 15% tariff would be "across-the-board" and "all-inclusive", blocking the application of other duties."It was tough negotiations (but) we came to a good conclusion," she said, highlighting the "openness" of the EU market, which Trump had vehemently leaders shook hands to applause in the room."We were able to make a deal that's satisfactory to both sides, so it's a very powerful deal. It's the biggest of all the deals," Trump 15% rate is lower than the 20% rate that Trump imposed, and later paused, in April as part of his contentious, self-styled "reciprocal tariffs", as well as the 30% rate that he threatened to slap in a letter sent to von der Leyen earlier this 15% rate is also inferior to the rates that other countries have negotiated with the White House in recent days, including Indonesia (19%) and the Philippines (19%), and matches the number granted to Japan (15%), a G7 it represents a painful concession, considering the talks began with von der Leyen offering a "zero-for-zero" tariff agreement. Through the back-and-forth process, von der Leyen repeatedly warned that "all options", including a never-used instrument against economic coercion, were on the table in case of an undesirable tensions mounted, the European Commission prepared several lists of retaliatory measures against US products worth €93 billion in never resorted to any tit-for-tat measure due to stark differences between member states. Some countries, like France and Spain, advocated a show of force against Washington, while others, like Germany and Italy, pushed for a quick ideological gap closed after Trump made his out-of-the-blue 30% threat, which prompted outrage across the bloc and hardened the mood towards Trump's arrival disrupted transatlantic commerce, EU-made products were subject to an average tariff rate of 4.8% upon entering US territory. Sunday's deal presumably entails an additional 10% to reach the 15% cars, which are today under a 27.5% tariff, will be brought under the 15% rate.A "zero-for-zero" scheme will apply to aircraft and related components, semiconductor equipment, critical raw materials and some chemical and agricultural products."We will keep working to add more products to this list," von der Leyen she explained, the bloc commits to spending over $250 billion per year on purchasing American liquefied natural gas (LNG), oil and nuclear fuels to replace Russian energy. The total pledge will amount to about $700 billion by the end of Trump's about what concessions, if any, the US had made in the talks, the Commission chief replied with a general remark about shared prosperity."The starting point was an imbalance, a surplus (of goods) on our side and a deficit on the US side. We wanted to rebalance the trade relation, and we wanted to do it in a way that trade goes on between the two of us across the Atlantic," she said."I think it's going to be great for both parties," Trump meeting in Scotland took place amid sky-high expectations due to the looming deadline of 1 August that Trump had imposed to force nations to either offer far-reaching concessions or face punishing der Leyen was accompanied by Maroš Šefčovič, the European Commissioner for Trade, who has been travelling across the two sides of the Atlantic Ocean in an attempt to gain a better understanding of the White House's maximalist was also joined by her powerful chef de cabinet, Björn Seibert; her trade advisor, Tomas Baert, and the Commission's director general for trade, Sabine the last stretch of negotiations, von der Leyen's team had realised that 15% was the lowest number that Trump was willing to settle for. The 15% rate was considered high for the bloc but palatable if paired with carve-outs for strategic sectors.A major concern along the way has been pharmaceuticals, which the EU exports in large volumes to the American market. The White House has opened a formal investigation into pharma products, a step that can pave the way for a tailor-made the start of the meeting, Trump said pharma would be excluded from the deal."We have to have them built and made in the United States, and we want them made in the United States," Trump told reporters. "Pharmaceuticals are very special. We can't be in a position where (...) we're relying on other countries."At the end of the meeting, von der Leyen said EU-made drugs would fall under the 15% rate but admitted Trump could take further action to address the matter "globally"."15% is certainly a challenge for some, but we should not forget that it keeps us access to the American market," she admitted, noting the bloc would continue to diversify its trade partners to create greater opportunities for European exporters and saga might soon take another twist: next week, a federal appeals court in the US will begin hearing arguments in a closely-watched lawsuit challenging Trump's authority to slap across-the-board tariffs under the pretext of a national emergency. — Euronews
Leaders
7 hours ago
- Leaders
US, EU Strike Trade Deal with 15% Tariffs on European Exports
The US and European Union (EU) agreed on a trade deal that ends months of economic standoff between two of the world's largest trading partners. The announcement came after a brief meeting between the US President, Donald Trump, and the European Commission chief, Ursula von der Leyen, at Trump's Turnberry golf course in Scotland. US-EU Trade Deal On Sunday, Trump announced a 15% tariff on most imports from the EU nations including automobiles, pharmaceuticals and semiconductors, according to the Associated Press (AP). Moreover, he said that the EU agreed to purchase, over three years, $750 billion worth of energy from the US, and invest $600 billion more in the US, including major military equipment purchase. 'It was a very interesting negotiation. I think it's going to be great for both parties,' Trump said, calling the agreement 'a good deal for everybody' and 'a giant deal with lots of countries.' Meanwhile, von der Leyen said the deal 'will bring stability, it will bring predictability, that's very important for our businesses on both sides of the Atlantic.' Working Out Details The 15% tariff is only half the 30% duties that Trump threatened to impose starting on August 1, 2025. However, the European Commission President said that the deal is a 'framework' agreement and details will be sorted out over the next weeks. Von der Leyen also said that the 15% tariff will not apply to everything, as both sides agreed on 'zero for zero tariffs on a number of strategic products.' These products include 'all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials.' 'And we will keep working to add more products to this list,' she added. However, Trump said that a 50% US tariff he has implemented on steel and aluminum globally will stay in place, according to BBC. European Leaders Reaction The European Commission must present the deal to the EU member states and lawmakers, who will make the ultimate decision on approval. With regards to this, European leaders offered a cautious welcome to the deal. The Irish Prime Minister, Micheál Martin, pointed out that tariffs would still be higher than before, making trade 'more expensive and more challenging.' Meanwhile, Germany's Chancellor, Friedrich Merz, noted that the deal averted a trade conflict that would have hit the German economy hard. 'Stable and predictable trade relations with market access benefit everyone on both sides of the Atlantic, businesses and consumers alike,' he posted on X. Moreover, Italy's Prime Minister, Giorgia Meloni, welcomed the deal, but said she needed to see the details, reported Italy's Ansa news agency. US-EU Trade Dispute Earlier in July, Trump announced imposing 30% tariffs on the EU, starting on August 1, as the US and the EU were edging closer toward a deal. Trump said that that trade deficit with the bloc is a national security threat. He also warned the EU of any retaliatory measures. In response, von der Leyen said that the EU would take the necessary steps and countermeasures to protect the bloc's interests, while underscoring commitment to continuing negotiations to reach a deal before August 1. The EU is one of the US' largest trading partners, with trade in goods between the two totaling around $976 billion last year. The US imported goods worth about $606 billion from the EU and exported around $370 billion in 2024. Short link : Post Views: 23
